Annual Compliance
LLP annual compliance includes filing Form 11 (Annual Return), Form 8 (Statement of Accounts), and Income Tax Returns annually.
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Annual Compliance
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LLP Annual Compliance Overview
LLP annual compliance refers to the mandatory legal requirements that a Limited Liability Partnership (LLP) must fulfill each year. Key filings include the Annual Return (Form 11) and Statement of Accounts and Solvency (Form 8), submitted to the Registrar of Companies. Additionally, LLPs with turnover exceeding ₹40 lakh or contributions over ₹25 lakh must undergo an audit. Income tax returns must also be filed, and GST returns may be necessary if applicable. Timely compliance ensures the LLP’s legal standing, avoids penalties, and maintains transparency. Adherence to these requirements is crucial for smooth operations and safeguarding the LLP’s reputation and credibility.
Limited Liability Partnerships (LLPs) Compliance Requirements
Limited Liability Partnerships (LLPs) are recognized as separate legal entities, and therefore, they are bound by specific compliance obligations. The responsibility for ensuring compliance rests with the Designated Partners of the LLP. The key LLP compliance requirements for LLPs include the following:
- Maintenance of Proper Book of Accounts
- Filing of Annual Return
- Filing of Statement of Accounts
- Filing of Income Tax Return (ITR – 5)
- Filing of Tax Audit (If Applicable)
Ensuring annual compliances of LLP with these obligations not only maintains the legal status of the LLP but also helps in building transparency, credibility, and financial accountability.
Documents Required for LLP Annual Filing Compliance
For filing your LLP's annual return (Form 11 and Form 8), you'll need to have the following documents in order:
Documents required for Form 8 LLP (Statement of Account and Solvency)
- LLP Agreement
- Audited Financial Statements (if applicable)
- Bank Statements
- Details of Investments and Loans
- Details of Partners’ Capital Accounts
Documents required for Form 11 LLP
- LLP Agreement
- Proof of LLP Incorporation Certificate
- Details of Partners and their Contribution
- Changes in Partners or LLP Agreement (if any)
- Details of any penalties imposed during the year
Note: This is a general list, and specific requirements might change depending on your LLP’s circumstances. It’s advisable to consult with our tax advisor at Vakilsearch to ensure you have all the necessary documentation.
Filing of Annual Return - LLP Form 11
LLPs are required to file an annual return with the Ministry of Corporate Affairs for each financial year. This annual return is submitted using Form 11, and it provides essential information. This form gathers essential details about the LLP, including the total number of designated partners, comprehensive partner information, contributions received by partners, and a summary of all partners involved.
Filing Deadline
All LLPs are required to submit Form 11 within 60 days after the conclusion of the financial year. This means that Form 11 should be filed by May 30th each year.
Importance of Timely Filing
It’s crucial for LLPs to adhere to this deadline, as failure to do so can have consequences. One significant implication is that an LLP will not be permitted to close or wind up its operations until it has filed all its annual returns, including Form 11.
Penalty for Late Filing
In the event that an LLP neglects to submit its LLP annual filing forms within the stipulated timeframe, it will incur a penalty of Rs.100 for each day of delay performed.
Duration of Penalty
The penalty will be applicable from the due date of filing the return and will continue until the actual return is filed.
LLP Annual Return Form 8
Form 8 LLP, also known as the Statement of Account and Solvency, is another essential form for your LLP’s annual compliance filings. It focuses on the financial health of the LLP.
Form 8 LLP Due Date
The due date for filing Form 8 differs from the Annual Return (Form 11). Form 8 needs to be submitted within 30 days from the end of six months following the closure of the financial year. Considering the standard LLP financial year ends on March 31st, the due date for Form 8 typically falls on October 30th of each year.
Form 8 LLP Late Fees
Similar to Form 11, delayed filing of Form 8 attracts penalty fees that increase with the duration of the delay. The MCA doesn’t publicly disclose the exact penalty structure for Form 8, but it generally follows a pattern similar to Form 11:
- No penalty: For filing within a specific period after the due date (exact timeframe might vary).
- Late filing fee: A fixed amount for delays exceeding the initial grace period.
- Increased penalty: A daily penalty for delays exceeding a further timeframe. This penalty can accumulate significantly for extended delays.
FAQ ON LLP ANNUAL COMPLIANCE
LLP annual compliance refers to the statutory requirements that Limited Liability Partnerships must meet each financial year, including filing forms and maintaining records.
- Form 11 (Annual Return): Details about LLP partners and changes, due within 60 days of the financial year-end.
- Form 8 (Statement of Accounts and Solvency): Declares financial performance and solvency, due by October 30.
Yes, LLPs must file income tax returns annually, with the deadline varying depending on audit requirements.
An audit is mandatory if the turnover exceeds ₹40 lakh or contributions exceed ₹25 lakh.
- Only LLPs registered under GST are required to file GST returns regularly.
